Renault Nissan Strengthen Alliance - Will Converge on EV Powertrain Development

Renault Nissan Strengthen Alliance - Will Converge on EV Powertrain Development

Renault-Nissan has just announced that effective April 1, 2014 the two automakers will converge in four key areas:

Nissan LEAF

Nissan LEAF

  • Engineering
  • Manufacturing & Supply Chain Management
  • Purchasing
  • Human Resources
The goal of the convergence is to "achieve a minimum €4.3 billion annual synergy." says Renault-Nissan.

But what's up with electric vehicles?  There's convergence there too:

"Engineering: Renault and Nissan will combine Common Module Family engineering, advanced research, powertrain development (including electric vehicles), systems engineering and testing facilities and services. Tsuyoshi Yamaguchi, Alliance Director of Platforms and Parts, is appointed Alliance Executive Vice President, Alliance Technology Development, for the new converged Alliance function."

What's this mean for future Renault-Nissan EVs?  Well, as the press release clearly states, the convergence in EVs will be limited to "powertrain development."  From that, we can conclude that future Renault-Nissan EVs will share vital electric vehicle components such as motors, on-board chargers, battery packs and more.

Don't expect to see the fruits of this convergence appear for a couple of years though.

Live Shot Of The Renault Zoe Using The New Flexi Charger Cable - Now Standard On All Models

Live Shot Of The Renault Zoe Using The New Flexi Charger Cable - Now Standard On All Models

Here's the rest of Renault-Nissan's press release:

Renault and Nissan to Converge Four Major Alliance Functions 1 April

To  goal, the Alliance is implementing convergence plans in four key areas: Converged business functions become official 1 April and are expected to have an immediate positive effect on operational performance. Newly appointed Alliance Executive Vice Presidents will take charge of increasing integration in each function.

Amsterdam, Netherlands (17 March 2014) - The Renault-Nissan Alliance today announced it will begin implementing convergence initiatives in four key operational areas starting 1 April, with the goal of achieving at least €4.3 billion in annualized synergies by 2016.

Management teams and the boards of Renault and Nissan finalized the convergence plans following consultations with employee representatives. The Alliance initially launched convergence study projects in late January in four key areas: Engineering, Manufacturing & Supply Chain Management, Purchasing, and Human Resources.

Under the plan, these functions will be jointly managed by Renault and Nissan, with a newly appointed Alliance Executive Vice President leading each function, and a new management committee to oversee implementation.

“Convergence within these four key business functions will result in an immediate increase in efficiency and leverage our size to achieve competitive economies of scale," said Renault-Nissan Chairman and CEO Carlos Ghosn. “The synergies will then enable us to deliver higher-value vehicles to customers and stay at the leading edge of innovation."

Four Converged Alliance Functions with New Leaders

Nissan e-NV200 Live in Geneva

Nissan e-NV200 Live in Geneva

Engineering: Renault and Nissan will combine Common Module Family engineering, advanced research, powertrain development (including electric vehicles), systems engineering and testing facilities and services. Tsuyoshi Yamaguchi, Alliance Director of Platforms and Parts, is appointed Alliance Executive Vice President, Alliance Technology Development, for the new converged Alliance function.

Manufacturing Engineering & Supply Chain Management: The new Alliance converged manufacturing function will cover global industrial strategy (including sourcing), production process engineering, production control and supply chain management. Shohei Kimura, Nissan Corporate Vice President for Vehicle Production Engineering, is appointed Alliance Executive Vice President, Manufacturing Engineering and Supply Chain Management.

Purchasing: Renault and Nissan have enjoyed an integrated purchasing organization for more than a decade. But convergence of major engineering and manufacturing activities will drive greater purchasing synergies and more economies of scale. Christian Vandenhende, Managing Director of the Renault-Nissan Purchasing Organization, is appointed Alliance Executive Vice President, Alliance Purchasing.

Human Resources: Renault and Nissan teams will implement common HR processes throughout the Alliance, including the creation of a unified “talent management" policy across the companies' global operations. Marie-Francoise Damesin, Renault executive vice president for Human Resources, is appointed Alliance Executive Vice President, Alliance Human Resources. In addition, Greg Kelly, Nissan Senior Vice President of the CEO Office and Global Human Resources, is appointed Alliance Executive Vice President, Alliance Talent Management.

To assist with the deployment and ongoing development of the new organizational structure, a new Management Committee Alliance will be established, headed by Carlos Ghosn. In addition, Christian Mardrus, Senior Vice President and Managing Director for the Alliance CEO Office and Global Logistics, will become Alliance Executive Vice President for Renault-Nissan BV and the Alliance CEO Office.

Together, Stronger for 15 Years

Convergence in four key business functions is the latest step in the 15-year evolution of the Renault-Nissan Alliance, which was formed on 27 March 1999.

Since then, the Alliance has become the longest lasting and most productive cross-cultural collaboration in the auto industry. The companies have already integrated several functions, including information technology, logistics, customs and trade, and purchasing.

The Alliance has expanded significantly since its founding and now ranks among the world's four largest automotive groups by sales volume. The Alliance has partnerships and joint ventures with Daimler, Mitsubishi, AvtoVAZ, Ashok Leyland and Dongfeng.